Are we in a foreclosure lull?
There's a healthy debate right now about how many foreclosures there really are in the Twin Cities and the best way to count them.
Lisa Proechel, though, left us with a sobering message recently that no matter how we look at the current data, we should expect to see the number of foreclosures start to rise again.
"I am a real estate agent who works primarily with foreclosed properties and I can tell you there are a lot of properties out there that banks have not yet foreclosed on," said Proechel, a source in MPR's Public Insight Network.
Create a More Connected Minnesota
MPR News is your trusted resource for the news you need. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.
In many ways, the housing recovery of 2009 was somewhat artificial. Yes, you had low interest rates and good prices and 1st time homebuyer credit. However, you also had low inventory.
Banks have held off foreclosing on many mortgages that are in default because of the requirements that the Obama administration has put on them to try to work things out with the homeowners.
This has delayed many foreclosures which eventually the banks will be foreclosing on.
I have heard from CEO's of many banks that this has been what is going on and that you will see the banks once again foreclosing on properties which of course means more inventory.
Proechel's view surprised me a little. Clearly, we have a long way to go in this market, but the problems of inventory -- a build up of unsold homes driven by foreclosures and short-sales -- were easing.
"I do not expect the 'housing recovery' we saw in 2009 to last," said Proechel. "It was a great real estate year, but there are more challenges to come."
********************************************
Do Proechel's insights match what your seeing in the Twin Cities and Minnesota real estate markets?
Post your thoughts below or contact me directly.